FROM THE STATIC TO THE DYNAMIC - SOME PROBLEMS IN THE THEORY OF TAXATION

This paper considers problems and issues that arise when we attempt to extend the static theory of taxation and production planning to a dynamic context and to combine that theory with theories of growth. The reasons dynamic theory is less developed include problems with the analytical tractability of even those dynamic models which attempt to retain the basic structure of the static model. Furthermore, difficult and interesting issues arise in a dynamic context which are either not present or are much less severe in the static theory. Special attention is paid to these new issues and the difficulties they pose.